International Media Watch of news headlines and current affairs reports about Romania

Friday, January 23, 2009

IMF sees Romania 2009 C/A gap down at 10.5 pct/GDP

BUCHAREST, Jan 23 (Reuters) - Romania's current account deficit is seen falling to around 10.5 percent of gross domestic product in 2009 from an estimated 13 percent a year ago, the International Monetary Fund said.

'It is possible to see a compression of the current account deficit,' IMF senior regional representative for Romania and Bulgaria Juan Jose Fernandez-Ansola was quoted as saying by daily Business Standard on Friday.

'I think it will be at around 10.5 percent of GDP this year. However, the level is still very high and funding this gap will continue to be a challenge.'

Romania's double-digit external shortfall makes it one of emerging Europe's most vulnerable economies as the escalating global cash squeeze limits access to funding.